Landlords have been given a new borrowing option after Coventry Building Society launched into the limited company buy-to-let market.
The lender is offering a two-year fixed rate for 5.36% and a five-year deal at 5.59% at 75% loan-to-value for a limited company buy-to-let purchase.
Adam Stiles, managing director at mortgage broker Helix Financial Partners, said: “This is a really exciting development from Coventry and a sign that limited company buy-to-let is entering the mainstream. This route has been a core way of financing for a number of years now, so this is a hugely positive step by a mainstream lender and the hope is that the remaining incumbents will follow suit. Well done Coventry Building Society.”
David Stirling, director at Mint Mortgages & Protection, added: “Landlords have been under pressure for several years, with changes to stamp duty and income tax making property investment less attractive.
“As a result, many are now exploring the option of building property portfolios through limited company structures, which offer certain tax advantages. However, this part of the market has traditionally been underserved, with fewer lenders offering products—leading to higher rates and limited choice. That’s why it’s encouraging to see a major building society like Coventry entering the space. Their involvement brings healthy competition to established niche lenders such as Kensington and The Mortgage Works, ultimately broadening the options available to landlords.”
This article is taken from Landlord Today